Research On Internal Growth Factors Of Enterprise Based On Lifecycle Of Enterprise And Industry

The development of Enterprises is similar with organic life's Prosperity and demise which means all of the enterprises go through a process of birth to death. In the three decades of reform and opening-up, most of enterprises in our country didn't make a long life successfully. According to the research data, the average lifespan of our SMEs is 3 or 4 years, and only 7 or 8 even for the enterprise groups. Therefore, revealing the factors which affect and decide whether enterprise can grow healthy and keep vitality or not have actual significance and reference value.Being guided by theory of lifecycle of enterprise and industry, this research explores the inner-enterprise factors which influence the growth of enterprise. By reviewing and summarizing theory of Firm growth,Enterprise and Industry Lifecycle, this paper divide industry lifecycle into four stages: Carve out, Growth, Mature and Decline. Then construct index system of inner-enterprise factors in growth industry combining the characteristics of growth industry. Then this paper segment lifecycle of enterprise into five stages: Existence, Survival, Success, Take-off, Maturity. And analyze inner-enterprise factors with the characteristics of above five stages. On the basis of the above analysis, the integral index system which contains 11 factors is completed. This paper claims that inner-key factors are not the same in different lifecycle stage, and the impact on growth is also changing as companies'environment constantly changes.In empirical research, this paper chose four types enterprises which selected by lifecycle stages in hardware industry as its study object in Yongkang city, Zhejiang province. Then this paper employed research data and SPSS17.0 to analyze and discuss inner-key affecting factors in the view from both overall and partial which means four stages: Existence, Survival, Success & Take-off, and Maturity. Finally, this paper account that the inner-key affecting factors contain Strategic formulation and implementation capacity, Core team stability, Technical innovation, Market development and Financial management capacity.